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REVENUE FROM CONTRACTS WITH CUSTOMERS
 3 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACTS WITH CUSTOMERS
The Company manufactures and sells products, primarily to OEMs of light vehicles and, to a lesser extent, to other OEMs of commercial vehicles and off-highway vehicles, to certain tier one vehicle systems suppliers and into the aftermarket. The Company’s payment terms are based on customary business practices and vary by customer type and products offered. The Company evaluated the terms of its arrangements and determined that they do not contain significant financing components.
Generally, revenue is recognized upon shipment or delivery; however, a limited number of the Company’s customer arrangements for its highly customized products with no alternative use provide the Company with the right to payment during the production process. As a result, for these limited arrangements, revenue is recognized as goods are produced and control transfers to the customer using the input cost-to-cost method. The Company recorded a contract asset of $14 million and $16 million at March 31, 2023 and December 31, 2022, respectively, for these arrangements. These amounts are reflected in Prepayments and other current assets in the Company’s Condensed Consolidated Balance Sheets.
In limited instances, certain customers have provided payments in advance of receiving related products, typically at the onset of an arrangement prior to the beginning of production. These contract liabilities are reflected as Other current liabilities in the Condensed Consolidated Balance Sheets and were $12 million at March 31, 2023 and $16 million at December 31, 2022. These amounts are reflected as revenue over the term of the arrangement (typically 3 to 7 years) as the underlying products are shipped and represent the Company’s remaining performance obligations as of the end of the period.
The Company continually seeks business development opportunities and at times provides customer incentives for new program awards. When the Company determines that the payments are incremental and incurred only if the new business is obtained and expects to recover these amounts from the customer over the term of the new business arrangement, the Company capitalizes these amounts. As of March 31, 2023 and December 31, 2022, the Company recorded customer incentive payments of $34 million in Prepayments and other current assets, and $90 million and $99 million, respectively, in Other non-current assets in the Condensed Consolidated Balance Sheets.
The following tables represent a disaggregation of revenue from contracts with customers by reporting segment and region. The balances for the three months ended March 31, 2022 have been recast for a change in reporting segments that was made during the three months ended March 31, 2023. Refer to Note 22, “Reporting Segments And Related Information,” to the Condensed Consolidated Financial Statements for more information.
Three Months Ended March 31, 2023
(in millions)Air ManagementDrivetrain & Battery SystemsFuel SystemsePropulsionAftermarketTotal
North America$520 $371 $152 $128 $171 $1,342 
Europe890 300 227 60 112 1,589 
Asia491 283 117 251 16 1,158 
Other52 1 11 — 27 91 
Total$1,953 $955 $507 $439 $326 $4,180 
Three Months Ended March 31, 2022
(in millions)Air ManagementDrivetrain & Battery SystemsFuel SystemsePropulsionAftermarketTotal
North America$459 $306 $116 $123 $168 $1,172 
Europe733 234 241 50 99 1,357 
Asia516 355 154 221 13 1,259 
Other44 — 18 — 24 86 
Total$1,752 $895 $529 $394 $304 $3,874